(January 30, 2006 - Burbank, CA) – Warner Bros. Home Entertainment Group today announced the formation of a joint venture with arvato mobile, In2Movies, a revolutionary new digital download platform for the electronic sell-through of motion picture and television content in Germany, Austria and German-speaking Switzerland. In2Movies will leverage the speed and flexibility of a Peer-to-Peer (P2P) network and the security and quality of a centralized service to provide consumers with the ultimate legal entertainment downloading experience. In2Movies will be the first P2P-based download-to-own platform to offer consumers legitimate content day-and-date with the German language DVD release. With the initial rollout, consumers will be able to download movies and television shows to their personal computers. The second version of the service will expand on consumers’ download options and enable them to download programs to DVD recorders and other portable devices. “Through this partnership with arvato mobile, Warner Bros will be breaking new ground in legal digital delivery, providing a rich experience at affordable prices," said Kevin Tsujihara, President Warner Bros. Home Entertainment Group. "One of the most effective weapons for defeating online piracy is providing legal, easy to use alternatives. Warner Bros. continues its role as an industry leader by expanding the reach of its digital content through this extremely innovative platform. Our initial efforts will focus on the German market but in the months ahead we will leverage this technology to better serve markets around the world.” In2Movies is intended to launch in March 2006 and will initially feature more than 80 Warner Bros. new releases, catalog favorites and local productions. The movies and television series offered on a non-exclusive basis will include "Batman Begins," "Charlie and the Chocolate Factory," "Must Love Dogs," "The O.C.," "Friends," "The Little Polar Bear - The Mysterious Island" and "Harry Potter and the Goblet of Fire." In2Movies will also feature entertainment programming from local distributors and third-party content providers. Consumers will be able to download programming directly from the In2Movies website, or via a click-through from other websites and also from retail partner websites powered by In2Movies. “With In2Movies, consumers can download films or TV shows with guaranteed speed, efficiency and quality through our proprietary technology,” said Bernhard Ribbrock, CEO arvato mobile. “Consumers are seeking new channels for finding authorized entertainment and this relationship signifies arvato’s entry into the motion picture download business; we would not have done so without a great partnership with the industry’s leading innovator, Warner Home Video.” In Germany during the first half of 2005, 1.7 million Internet users illegally downloaded a total of 11.9 million movies. Research has shown that 20 percent of illegal downloaders do so on a weekly basis. However, 73 percent of all illegal downloaders in Germany are interested in utilizing a “paid for” movie download service. In2Movies will offer consumers exactly that legal option and will provide a high quality and reliable service. “We are pleased to partner with arvato mobile and will support this joint venture with not only our industry-leading content, but also our expertise in marketing this content in parallel to the DVD release,” said Willi Geike, SVP and MD of Warner Bros. Entertainment GmbH. “In2Movies is a great opportunity to build a new digital distribution channel not only for consumers, but also provides a turn-key digital distribution solution for DVD retailers all over Germany, Austria and German speaking Switzerland.” In2Movies is built on the arvato mobile GNAB download platform, an innovative technology that combines a centralized, traditional Internet download platform with a decentralized or P2P network. The centralized component of GNAB ensures the protection of all copyrights and supports all the rules and requirements of the individual licensors. The decentralized component of GNAB makes it possible for the first time to distribute larger files like movies with the efficiency and economies of a distributed, peer-to-peer network. “In2Movies is built on our pioneering GNAB technology that brings together the controlled security that copyright holders demand of a digital distribution channel, with the convenience, community interaction and speed of a decentralized network that consumers desire,” said Kurt Smit, Managing Director of GNAB. About Warner Bros. Home Entertainment Group The Warner Bros. Home Entertainment Group was founded in 2005 to bring together all of the Warner Bros. Entertainment businesses involved in the digital delivery of entertainment content to consumers, including home video, online, wireless, games and anti-piracy and emerging technologies operations. WBHEG is a strategic recognition of the ongoing changes in the way consumers view entertainment product and seeks to maximize current and next-generation distribution scenarios to make the Studio’s content available to audiences through as many channels, platforms and devices as possible.
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